How to Price Electrical Jobs for Maximum Profit
Stop undercharging and start earning what you're worth. Complete pricing strategies for electricians in New Zealand and Australia with real examples and calculations.
Pricing electrical work is one of the biggest challenges for electricians, especially when starting out. Charge too little and you work hard for little reward. Charge too much and you lose jobs to competitors. This guide will help you find the sweet spot that maximises your profit while keeping you competitive.
Quick Reference: Average Electrician Rates
New Zealand
- Journeyman: $75-95/hour
- Master Electrician: $95-130/hour
- After hours: 1.5-2× standard rate
Australia
- Licensed: AUD $80-110/hour
- Master/Contractor: AUD $110-150/hour
- After hours: 1.5-2× standard rate
Understanding Your True Costs
Before setting rates, you need to know exactly what it costs to run your business. Many electricians undercharge because they don't account for all their overheads.
Fixed Costs (Monthly)
Vehicle Costs:
- • Van lease/loan: $800-1,200
- • Insurance: $200-400
- • Registration: $50-100
- • Maintenance fund: $300
Business Costs:
- • Liability insurance: $150-300
- • Phone/internet: $100-150
- • Software/tools: $200
- • Accounting: $200-400
Total Monthly Fixed Costs: $2,000-3,000+
Variable Costs (Per Job)
- Materials and partsAs quoted + markup
- Fuel$0.80-1.20/km
- Subcontractor feesAs agreed
- Permits/consent feesPass through + admin
Calculating Your Break-Even Rate
Your break-even rate is the minimum you need to charge per hour to cover all costs without making a profit. Here's how to calculate it:
Step-by-Step Calculation Example
Step 1: Annual Fixed Costs
$2,500/month × 12 = $30,000
Step 2: Billable Hours Per Year
40 hrs/week × 48 weeks = 1,920 hours
(allowing 4 weeks holiday/sick leave)
Step 3: Utilisation Rate
75% billable time = 1,440 chargeable hours
(25% spent on quotes, admin, travel, etc.)
Break-Even Rate:
$30,000 ÷ 1,440 = $20.83/hour
This covers your fixed costs only
Setting Profitable Rates
Your charge-out rate should cover costs AND provide a healthy profit margin. Here's the formula successful electricians use:
Profitable Rate Formula
Break-Even Rate + Labour Cost + Profit Margin = Charge-Out Rate
Example Calculation:
- Break-even (fixed costs): $20.83/hr
- Your wage/salary cost: $35.00/hr
- Profit margin (25%): $13.96/hr
- Charge-out rate: $69.79/hr → $85-95/hr recommended
Pricing Common Electrical Jobs
Small Jobs (Under $500)
| Job Type | NZ Price | AU Price |
|---|---|---|
| Power point replacement | $180-280 | AUD $200-320 |
| Light switch replacement | $150-220 | AUD $180-280 |
| Light fixture install | $150-400 | AUD $180-450 |
| Downlight installation (each) | $85-150 | AUD $100-180 |
| Safety switch test | $120-180 | AUD $140-200 |
Medium Jobs ($500-3,000)
| Job Type | NZ Price | AU Price |
|---|---|---|
| New circuit installation | $600-1,200 | AUD $700-1,400 |
| Switchboard upgrade | $1,500-3,500 | AUD $1,800-4,000 |
| EV charger installation | $800-2,500 | AUD $900-2,800 |
| Hot water cylinder install | $600-1,500 | AUD $700-1,800 |
Large Jobs ($3,000+)
| Job Type | NZ Price | AU Price |
|---|---|---|
| House rewiring (3-bed) | $8,000-15,000 | AUD $10,000-18,000 |
| Solar installation (6kW) | $8,000-12,000 | AUD $7,000-11,000 |
| Commercial fit-out (per m²) | $80-150 | AUD $90-170 |
Pricing Strategies That Work
1. Value-Based Pricing
Instead of charging by the hour, charge based on the value you provide. A safety inspection that prevents a house fire is worth more than the 2 hours it takes.
Example:
- • Hourly rate approach: 2 hours × $90 = $180
- • Value-based approach: Home safety certification = $350
- • Same work, nearly double the revenue
2. Flat Rate Pricing
Create a flat rate book for common jobs. Customers prefer knowing the total cost upfront, and you avoid disputes about time spent.
3. Tiered Service Levels
Basic
Minimum warranty, standard hours
Standard ⭐
Extended warranty, priority booking
Premium
24/7 support, lifetime warranty
Warning Signs You're Undercharging
You're busy but not making money
Customers never question your prices
You can't afford to hire help
You're working 60+ hours to make ends meet
How to Raise Your Prices
If you've been undercharging, here's how to raise prices without losing all your customers:
- Notify existing customers: Give 30 days notice of rate changes for ongoing contracts
- Grandfather loyal customers: Keep old rates for your best customers for 6 months while charging new customers the higher rate
- Improve your offering: Add value (better warranty, faster response) to justify higher prices
- Communicate value: Explain your expertise, qualifications, and quality guarantees
- Test new rates: Quote new customers at higher rates first to gauge market response
See Your Real Job Profitability
Stop guessing. TPT tracks labour, materials, and time on every job — so you can see exactly which jobs are profitable and which are costing you money, right inside your dashboard.
- Revenue, costs, and margin per job
- Colour-coded margin alerts (so you spot losers fast)
- Profitability by technician
- Year-to-date profit and margin summary
Track Job Profitability Automatically
TPT ERP tracks costs, time, and materials for every job. See exactly which jobs are profitable and which aren't.
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